While the words "Hard Corner" may not mean much too many people, when it comes to commercial real estate, they are definitely two very important words to consider. You see, when it comes to commercial real estate this is an important term that can be the makings of a great commercial real estate deal. When you are investing in real estate, you want to be sure that you find the key ingredients to making great commercial real estate deals. "Hard corners" are definitely one of those key ingredients that you need to keep in mind for a great deal.
Basically a "hard corner" is a piece of real estate that is located right where two roads intersect. This means that the land has frontage on two of its' sides, which makes it very valuable. It really doesn't take a genius to figure out that a piece of land that has two sides of frontage is going to be extremely valuable. Most of the time, real estate that is right on the corner of a major intersection will command a great deal more money than other pieces of property that only have road frontage of one side. In fact, land on "hard corners" can bring you at least 50% more than similar properties that only have one side of road frontage.
When you are evaluating how much a piece of retail property is worth the proximity to roads as well as the accessibility to roads is going to be and important thing to consider. More than likely people are not going to go to businesses that are difficult for them to get to. Businesses, such as pharmacies, restaurants, and gas stations find that they get twice the flow of business and exposure when they are located on a "hard corner" property.
Visibility is also an important factor for businesses when it comes to "hard corners." If you only have property with one side of road frontage, you will not be as visible to potential customers as you would be if you had two sides of frontage. Buildings that are on the corner tend to draw in more customers, since they are easy to get to and highly visible as well. When it comes to attracting customers, "hard corners" are the way to attract them when they are passing by your area.
If you want to maximize your investment as a commercial real estate investor or as a developer, then "hard corner" properties are definitely a great choice. Look for retail properties that fall at busy intersections and consider investing in them. Since they have so much road frontage they have a high value when it comes to dollars per square foot. However, it is also important that you understand that there will be various costs associated with purchasing this type of property, such as the cost of acquisition. Be sure to weigh the costs as well as the expected profits before you decide to take on this type of an investment.
Not only do you have the ability to make more money when investing in land with "hard corners," but you will probably be able to turn over the property more quickly as well. Property with great road frontage is in high demand and many businesses are constantly looking for these types of properties. So, if you purchase a property that is on a "hard corner" no doubt you'll be able to turn it over very quickly and for a sizable profit as well.
So, when you combine great profits with great turnover times, you get a win-win situation in commercial real estate. If you are looking for a great commercial real estate retail deal, then be sure to start looking for "hard corner" properties. No doubt you'll be setting yourself up to make an excellent profit.
About the Author
Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.
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